Given the market cap inflation that has accompanied oncology IPO's since mid 2013, it's a little incongruous to see an outfit like Five Prime with a market cap under 350M. A quick overview doesn't indicate any obvious reason for the weak valuation. The company has a partnership with GSK for FP-1039 extracellular ligand trap which is already in clinical development, along with a recently announced partnership with Bristol Myers on preclinical immuno-oncology candidates. The latter collaboration was accompanied by a 20M upfront payment, a fairly respectable sum just for use of Five Prime's drug discovery platform. The 62M IPO last September was also solid, if not a blockbuster.

Despite their apparent undervaluation when compared to the rest of the oncology IPO class of 2013, Five Prime doesn't have any late stage pipeline candidates and therefore has a great deal to prove. However, zzporte has decided to follow up recent successful ventures with Stemline and Agios with a starter 200 share position in Five Prime at 16.64.